Thomas Heaphy Jr., Securities Fraud, Connecticut 2017

stock-fraud

In a shocking turn of events, Thomas Heaphy Jr., 42, of East Moriches, N.Y., has pleaded guilty to conspiracy and tax offenses stemming from his role in a securities fraud scheme. The scheme, which lasted from 2011 to July 2016, involved Heaphy and his co-conspirators inducing investors to purchase securities by making false and misleading representations in calls, emails, and press releases.

According to court documents, Heaphy and his co-conspirators, including Christian Meissenn, William Lieberman, and Damian Delgado, defrauded investors through a stock “pump and dump” scheme. The issuing companies, which were essentially shell companies with virtually no legitimate business activities, included Terra Energy Resources Ltd. (stock symbol “TRRE”); Mammoth Energy Group, Inc. (stock symbol “MMTE”), a company that later became Strategic Asset Leasing Inc. (stock symbol “LEAS”); Trilliant Exploration Corporation (stock symbol “TTXP”); Hermes Jets, Inc. (stock symbol “HRMJ”), which later became Continental Beverage Brands Corporation (stock symbol “CBBB”); Dolat Ventures, Inc. (stock symbol “DOLV”), and Fox Petroleum, Inc. (stock symbol “FXPT”).

Heaphy received approximately 25 percent of all money that he induced individuals to invest. His personal gain from the scheme totaled approximately $719,000. Heaphy disguised the income by having the funds flow through the trust accounts of various attorneys, including Corey Brinson in Connecticut, into bank accounts in the name of various shell entities under Heaphy’s control. Heaphy’s failure to pay taxes on this income resulted in a loss of $147,345 to Internal Revenue Service.

Heaphy pleaded guilty to one count of conspiracy to commit mail and wire fraud, which carries a maximum term of imprisonment of 20 years, and one count of tax evasion, which carries a maximum term of imprisonment of five years. He is scheduled to be sentenced by U.S. District Judge Jeffrey A. Meyer on October 20, 2017.

At sentencing, Heaphy will be ordered to pay restitution to his victims, as well as back taxes, interest, and penalties to the Internal Revenue Service. This ongoing investigation is being conducted by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division, and U.S. Postal Inspection Service, with assistance from the Connecticut Department of Banking and the Hartford and Stamford Police Departments.

This case is being prosecuted by Assistant U.S. Attorneys Avi M. Perry and Peter S. Jongbloed. Heaphy is the latest in a string of defendants to be charged in this ongoing investigation. His co-conspirators, including Meissenn, Lieberman, and Delgado, have also pleaded guilty to various charges and are awaiting sentencing.

The Grimy Times will continue to follow this case and provide updates as more information becomes available.

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